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Manning & Napier Announces Agreement to Acquire Majority Interest in Rainier
That's too bad. I'm invested in RAIIX and have been very pleased with its performance and small asset base. I'm particularly concerned by this sentence in the press release:
"The transaction is structured with an initial upfront cash payment funded through the Company’s available cash position, with additional payments based on Rainier achieving certain financial targets over a four year period." Certain financial targets being AUM?
I fear another Marketfield fund scenario where asset bloat (after being acquired by NY Life) ruined a good fund.
I need to reconsider my investment in RAIIX. What other alternatives might one suggest for small-mid international growth? Perhaps GISOX?
The two are supposedly going to operate autonomously, but I definitely think there is the risk that M&N brings more of an asset gathering mentality and doesn't let Rainier close the strategy at a reasonable asset level.
I looked at Rainier and saw a boom bust mutual fund shop and passed. I am flabbergasted at RAIIX performance. Wonder how people figure out things are going to work out...
I fear another Marketfield fund scenario where asset bloat (after being acquired by NY Life) ruined a good fund.
mnzdedwards, the big, or actually huge difference between NY Life and Manning and Napier is that one is an insurance company and the other is a well respected mutual fund custodian. It could be a plus for Rainier funds but only time will tell.
Comments
"The transaction is structured with an initial upfront cash payment funded through the Company’s available cash position, with additional payments based on Rainier achieving certain financial targets over a four year period." Certain financial targets being AUM?
I fear another Marketfield fund scenario where asset bloat (after being acquired by NY Life) ruined a good fund.
I need to reconsider my investment in RAIIX. What other alternatives might one suggest for small-mid international growth? Perhaps GISOX?
Disappointed.
Mike_E
Then again it is institutional fund, so...